This executive summary presents the findings from two research projects on risk management which were funded by grants provided by CIMA. Our major focus study was on how risk impacted upon budgeting. The second grant was for a comprehensive survey and analysis of risk management in organisations and in particular how risk management impacted on both internal controls and on the role of the management accountant.
The report assists in understanding how and why organisations and their management accountants develop effective internal control systems to identify and manage risk. It concludes that the role of management accountants needs to shift towards a more strategic and value-adding role, which by definition includes a consideration of risk.